Telsyte has published our latest digital enterprise research study for New Zealand.

Commissioned by DXC.technology, the study provides a comprehensive view on the state of digital disruption and transformation across New Zealand organisations and the wider economy - the key themes covered in the study include:

The impact of digital disruption on New Zealand organisations

The approach to digital transformation and non-IT business unit technology spending

About TelsyteTelsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Australian households forecast to have more than 37 connected devices by 2023

SYDNEY, AUSTRALIA – The Australian IoT (Internet of Things) at home (IoT@Home) market grew 57 per cent during the past 12 months to $1.1 billion in 2018 and is forecast to reach $5.3 Billion by 2023, according to new research from Australian emerging technology analyst firm, Telsyte.

The Telsyte Australian IoT@Home Market Study 2019, now in its seventh edition has found more than five million Australian households (more than 50 per cent of total households) have started the smart home journey with at least one IoT@Home product installed by the end of 2018.

The increase of more than 30 per cent – from around 4 million households in 2017 – was primarily due to surging adoption of smart speakers.

Amongst the five million IoT@Home adopters, Telsyte research finds around a quarter are considered “invested” in smart home technology, with at least five different IoT@Home products already installed in the home (e.g. cameras, smart plugs, smart lighting and smart appliances).

This figure is set to grow even further with Telsyte predicting the average household in 2023 will have 37 devices, around half being IoT@Home devices. At the end of 2018, the average Australian household had 17 connected devices, primarily made up of smartphones, computers, tablets and other gadgets.

These “invested” IoT@Home adopters are more likely to be younger families and tech enthusiasts who have a range of consumer devices, such as drones, VR headsets, and location tracking tags.

Telsyte’s research shows rising energy costs has been driving adoption of smart energy solutions and government’s investment in renewable energy and subsidies for smart batteries are expected to boost the IoT@Home smart energy segment in the medium term.

The smart energy segment is now worth over one-third of the total IoT@Home market by revenue.

Smart connected appliances (e.g. whitegoods) are expected to be the longer term IoT@Home market revenue driver beyond 2020, making up around 40 per cent of the industry’s annual revenue by 2023.

“Nearly a third of Australians are interested in modernising their current residence to make it smarter,” Fadaghi says.

Among people looking to spend to make their home smarter, more than 40 per cent of their budget is set to be spent on improving energy efficiency or making the home safer.

More devices calling for more services

While DIY IoT@Home solutions have been gaining popularity, there are new opportunities for professional installers and services providers.

The market is ready for professional services with Telsyte research showing 45 per cent of Australians value an installer’s advice, and one in three households will require professional assistance to setup smart devices or appliances.

Support services will be most important for sophisticated devices such as smart intercoms and smart locks and other smart sensor-based products such as smart water taps.

In fact, one in three Australians are interested in monthly subscription IoT@Home services such as home security monitoring and energy monitoring and optimisation services.

Surge in smart speakers drives market growth

Australia’s IoT@Home market continued to benefit from surging smart speaker adoption and Telsyte forecasts the smart speaker category will continue to be the most successful IoT@Home product throughout 2019 with 2.5 million (26%) Australian households using smart speakers by end of the year, up from 1.6 million (16%) in 2018.

There is also a growing number of people interested in smart speaker applications. Some one in four IoT@Home adopters and potential adopters are interested in controlling IoT@Home and other connected devices, such as controlling lights and unlocking doors using smart speakers.

‘Getting everyday info’ overtook playing music as the most frequently used daily smart speaker application in 2018.

While concerns remain around privacy and security, Telsyte’s research shows there is a growing acceptance of smart speakers having access to different applications, devices and data sources, particularly amongst entertainment-related apps and security cameras.

Google remained the leader in the smart speaker market in 2018 with over 70 per cent of the main smart speakers sold being the Google Home series. Telsyte forecasts Google and Amazon smart “assistant” speakers will continue to be the top two sellers during 2019.

Homes getting ready for nbn™ and 5G connectivity

Smart homes need speedy connectivity and Australia is entering a new era of nbn™ and 5G wireless broadband services.

Telsyte’s latest consumer research shows nbn is the most important IoT@Home related feature when Australians move into a new home, when either renting or buying.

Ample built-in power plugs around the house to charge more connected devices as well as fixed network connections in rooms are seen as important.

Telsyte forecasts more IoT@Home devices such as smart security cameras that are 5G-capable will be offered as part of an IoT@Home subscription service.

Despite concerns around increasing usage of AI, Telsyte research shows close to half of people are open to the idea of having a more automated approach, including utilising AI, for home security. For example, being alerted to trespassing or unusual activities around the home based on facial recognition.

Smarter homes open new world of commerce

A new paradigm for digital commerce that is coming which is set to have as much impact as eCommerce and mCommerce before it.

Telsyte defines this as IoT-Commerce which encapsulates purchases enabled or facilitated by smart appliances (e.g. smart fridges) and other IoT@Home products such as smart speakers. While its early days, Telsyte predicts IoT-Commerce will become mainstream within 10 years’ time.

Telsyte’s latest digital consumer study found “convenience” is overtaking price as the number one factor for purchasing goods online instead of in-store. The natural extension of this is for sellers to look at technologies that can generate greater convenience than current eCommerce experiences and IoT@Home technology is a key enabler.

According to Telsyte’s research, close to half a million Australian households have subscribed to recurring delivery services during 2018, including services such as weekly meal delivery services or pet product delivery services, paving the way for more automated buying systems.

“IoT-Commerce is set to provide a more seamless and hassle-free experience when shopping for everyday household items, automating the process and freeing up time for Australians,” Fadaghi says.

However, Telsyte recognises key challenges exist with IoT-Commerce, including resistance from existing channels and supply chains, as well as technical challenges in getting fragmented systems to work together.

Telsyte predicts by 2040, at least a quarter of appliances will have built-in sensors and partnerships to facilitate IoT-Commerce in countries like the USA, UK, Australia and New Zealand.

By 2040, Telsyte forecasts the IoT-Commerce market could be worth more than $100 Billion in Australia, or equivalent to around 20 per cent of consumer retail trade by then.

While there are similar privacy and data security concerns for IoT-Commerce compared to overall IoT@Home adoption, Telsyte research found saving money in the long term and the potential for free appliances in exchange for longer term service agreements (e.g. a free fridge for a multi-year minimum spend grocery provision agreement) might help the market grow.

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

About TelsyteTelsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

SYDNEY, AUSTRALIA – Australia’s cloud Infrastructure-as-a-Service (IaaS) market continues to boom with organisations spending $688 million in 2018, a figure expected to reach around $1.2 billion by 2022, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian Cloud Market Study 2019 found maturity is rapidly increasing in Australia, with 84 per cent of organisations having a strategic approach to cloud computing and one in four (24%) having mature practices that are able to move workloads from on-premises to cloud.

The strong spending is in line with Australian organisation’s intentions to increase total IT budgets, with an average increase of 6 per cent expected in 2019, up from 4.8 per cent in 2018. The main driver for IT budget growth is digital transformation, of which cloud computing is a key enabling technology.

Among organisations which have adopted cloud computing, 43 per cent plan to increase spend on cloud infrastructure as more experiment with multiple platforms.

According to Telsyte, a multi-cloud approach is dominating, with 77 per cent of all Australian organisations using more than one platform, and almost half (49%) using more than four cloud platforms. The average number of cloud platforms used by organisations reached 3.8 in 2018.

Early concerns about cloud adoption have all but disappeared with few organisations having any cloud restrictions. In 2018, 41 per cent had a ‘cloud first’ policy, and another 36 per cent place no restrictions on cloud use.

Cyber security is both a driver and a challenge for organisations when it comes to cloud, with 40 per cent ranking security as a top reason for adopting cloud-based applications. Conversely, 42 per cent rate security as a concern with cloud computing.

ERP, big data remain big opportunities for cloud applications

With IaaS being adopted rapidly, Australian enterprises are now deploying a range of applications off premises.

Australian companies see cloud as an important enabler for big data applications, with 84 per cent of large organisations using some form of cloud storage or compute for their main big data analytics program as massive amounts of data out-grows on-premise capabilities.

The uptake is extending to traditional “core” applications with almost two thirds (65%) of organisations claiming their ERP systems are fully or partially cloud-based. Cloud deployments have been particularly important to address enterprise application challenges of poor integration (30%); lack of infrastructure (29%); and long deployment times (26%).

Skills availability challenges cloud

Australia’s adoption of cloud must be supported by skilled professionals, however there is still a gap in the market for cloud skills.

Telsyte research found organisations are looking towards partners to manage cloud services, with 37 per cent of large organisations currently outsourcing cloud management to third parties.

Local data centres remain important for Australian organisations with 62 per cent of IT and business leaders being more willing to try cloud services from multinational organisations if they have local data centres.

A significant 69 per cent of Australian organisations still have restrictions in adopting off-shore public cloud services, with the majority citing internal company policies as the main limitation. Only around half of organisations interviewed believed their cloud computing practices were fully compliant to GDPR regulations.

Australian organisations IT trends and strategies, including cybersecurity

Strategic analysis of market opportunities for cloud infrastructure and applications

In preparing this study, Telsyte used:

An online survey of 447 IT decision makers across Australian organisations having greater than 20 employees, with 60 per cent of respondents coming from organisations with greater than 200 employees.

Reports released by service providers

On-going monitoring of local and global market trends

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC Technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

SYDNEY, AUSTRALIA – Australian tablet sales fell in the past six months due to a continued decline in the Android market and a slowing in growth of the maturing 2-in-1 segment, according to new research from Australian emerging technology analyst firm, Telsyte.

Telsyte estimates around 1.6 million tablets were sold in the second half of 2018, down 2.1 per cent from the same period a year earlier. Apple remained the leader in tablet sales share (iOS: 49.6%, Windows: 29.9%, Android: 19.3%, and Chrome: 1.2%) with the new iPad 9.7 inch (2018) once again the most popular model due to its price point, which appealed to upgraders.

Both Apple (up 5.1%) and Windows-based (up 2.1%) devices experience growth during the half, but the big mover was Android-based devices, with sales down 21 per cent.

The top three vendors were Apple, Samsung, and Microsoft, with combined shares accounting for more than 75 per cent of total sales during the half.

Apple remained the leader in repeat purchase intention in the tablet category, followed by Samsung (more than 80% and 50% respectively).

Telsyte research found the 2-in-1 device category has passed its early growth phase with around 3.5 million Australians now using one, of which more than 70 per cent are Windows-based.*

Tablet sales are expected to continue to face challenges due to longer overall replacement cycles as consumers hold onto their chosen device longer. The average replacement cycle of tablets has increased to around 3.1 years (up 0.6 years from 2017), a faster rate compared to smartphones, according to Telsyte research.

Telsyte estimates around 15.7 million Australians had access to a tablet at the end of 2018 making it a highly mature segment.

While Australians are replacing their tablets less frequently, tablet users are still spending around two hours per day on their slate devices, which is similar to previous years.

With technologies such as 5G, eSIMs and larger shared mobile data plans, there is still huge potential for more connected tablets and 2-in-1s to be realised.

Telsyte estimates around two million tablets were connected to mobile networks at the end of 2018.

Interactive gaming is a critical application for tablets according to Telsyte research, and interactive gaming on tablets will continue to fuel tablet replacements and upgrades, as well as more spending on the Android and Apple app stores in 2019.

Telsyte research has consistently shown more than half of app revenue comes from games.

Furthermore, the mobile market is ripe for a gaming subscription service (i.e. “the Netflix for games”) due to strong growth in free-to-play (with in-game purchases) and casual players.

Some two million Australians spent money on tablet games in 2018, of which around half made in-game purchases for free-to-play games such as Fortnite, Pokémon Go and Clash of Clans.

In addition to interactive gaming, education is expected to be another key segment driving tablet usage in Australia.

Telsyte research found more than 60 per cent of children (under 18) had access to a tablet at the end of 2018. Among children with access to a tablet, the majority (81%) are using it at least a few times a week, averaging two hours a day.

“More cost effective 2-in-1 devices designed for the education market are likely to be popular in coming years,” Lee says.

Telsyte estimate that 16 per cent (1.6 million) of households were using at least one smart speaker at the end of 2018. Among these households a growing share (currently below 5%) are using smart speakers with displays (also known as smart displays), such as Google Home Hub, Amazon Echo Spot and Lenovo Smart Display.

While Australians are increasingly comfortable with voice commands, additional touch interfaces will help with navigation for more advanced smart home applications and for visual information display.

Australians have been using their tablets as rudimentary ‘smart displays’, such as for reading recipes and playing videos in the kitchen.

Telsyte estimates up to 40 per cent of smart speakers sold could have a display within the next two years as the categories converge.

Editor’s note:Tablet definition: A computer device consisting of a 7 inch or larger touch screen that can be used in a slate format (not requiring keyboard or mouse). Telsyte’s definitions includes 2-in-1 devices with detachable or foldable keyboard, and tabletop, or reclinable desktop screens that provide a tablet form factor experience.

2-in-1 definition: Primarily refers to laptops that have a touch screen and detachable keyboards or foldable form factors to provide a pure tablet-like experience. Tablets that are known for their versatility and mimic laptop-like experience with keyboards or type covers are also considered as 2-in-1s. E.g. Microsoft Surface tablets, apple iPad Pro, Samsung Galaxy Book, HP Spectre x360, Asus Chromebook Flip 2, or Lenovo Yoga 730.

*Please note Telsyte measures Apple iPad Pro models as 2-in-1s for comparison reasons, due to having a specifically designed Apple keyboard which is typically sold together.

Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used. Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting smart device sales in Australia and has been providing insights on mobile technologies since 2006.

About TelsyteTelsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.